U.S. Treasury Secretary Scott Bessent, on June 4, urged lawmakers to support the CLARITY Act during an FY2027 budget hearing at the Senate Finance Committee, hoping the bill can pass this summer. Bessent confirmed that the Treasury Department is moving forward with the establishment of strategic Bitcoin reserves at a “prudent pace.” The CLARITY Act is currently deadlocked in the Senate.
Status of the CLARITY Act: Passed by the House, with three major obstacles in the Senate
Based on publicly available legislative records and a report by The Block, the CLARITY Act would, for the first time at the federal level, regulate the digital asset industry:
House of Representatives: a version of the bill passed last year
Senate obstacles (three confirmed points of disagreement):
· How stablecoin rewards are handled
· The scope of legal protections for software developers
· How to address potential conflicts of interest that may arise after President Trump enters the cryptocurrency space
In his testimony before the Senate Finance Committee, Bessent did not offer specific solutions to the three points of disagreement above—he only expressed expectations for the bill to pass in the summer.
Strategic Bitcoin reserves: the basis of an executive order and Bessent’s confirmation on Wednesday
In Trump’s early days in office, he signed an executive order aimed at establishing strategic Bitcoin reserves. The funding sources confirmed include the Bitcoins obtained by the government through criminal or civil forfeiture procedures, as well as a separate digital asset reserve.
Bessent’s public remarks during the June 4 hearing were as follows: “We are moving forward with this work at a prudent pace. We’re ensuring that in this complex process, we use best practices, and that this work can be durable and effective.”
Previously, Patrick Witt, executive director of the President’s Council on Digital Assets, said in April 2026 that “major announcements” would be issued in the coming weeks regarding the next steps for the reserves. As of June 4, Bessent has not disclosed the current reserve size, timeline, or operational details for the next phase.
FAQ
How is the CLARITY Act different from the House version that passed last year?
Bessent did not explain any specific differences between the bill being advanced under the current process and the version already passed by the House. At present, publicly available records indicate that the Senate’s main disagreements still center on stablecoin rewards, protections for software developers, and Trump’s crypto-related conflicts of interest. No Senate version has yet entered the final voting procedure.
What are the funding sources for the strategic Bitcoin reserves, and what is the current scale?
Under Trump’s executive order, the primary funding sources for strategic Bitcoin reserves are Bitcoins obtained by the government through criminal or civil forfeiture procedures, as well as a separate digital asset reserve. During the June 4 hearing, Bessent did not disclose the current size of the reserves, the number of holdings, or any details of purchase plans—he only confirmed that the process is “complex” and moving forward.
Why is the legislative timeline for the CLARITY Act so tight before summer?
According to publicly reported information, legislative priorities on Capitol Hill are expected to shift toward budget bills before year-end. In addition, the midterm elections in mid-November are expected to take up lawmakers’ time and attention heavily after summer. If the bill cannot complete Senate procedures during the summer, the next possible legislative window would be pushed back to 2027.
